Mitsubishi Plastics, Inc. (head office: Chuo-ku, Tokyo; president: Hiroshi Yoshida) is a manufactures and sells housings for LCD televisions and other molded plastic parts, as part of its functional molded products business.  Kodama Chemical Industry Co., Ltd. (head office: Taito-ku, Tokyo; president: Ken Ishii), an equity method affiliate of MPI, also molds automotive components, parts for home fixtures, and other molded parts.

Amid the current severe climate of this business, MPI and KCI had signed a comprehensive business alliance agreement ("comprehensive agreement") on September 30th, 2009, with the goals of maximizing their synergy, accelerating the restructuring of each other's businesses, and increasing the corporate values of both companies. Today, the companies signed additional agreements laying out basic terms and conditions based on the comprehensive agreement. See below for details.

 

1. Overview
After the signing of the comprehensive agreement by MPI and KCI, the two companies created joint working groups for each potential alliance, in order to create synergy and maximize corporate value in the field of molding and components carried out by each company. After study by the working groups, the two companies have now agreed on the use of facilities and the like, and a technical alliance, as described below.

2. Details of the Agreements
(i) Agreement on Business Alliance for Use of Facilities, etc.
MPI and KCI's business sites, including those of affiliates in Japan and overseas, are mutually complementary. The two companies will thus streamline their businesses by outsourcing the following operations.
(1) Streamline each company's production and distribution systems through production outsourcing, loans of land and property, and the like
(2) Expand sales through sales and marketing of each other's products
(3) Outsourcing of joint purchasing and the like

(ii) Agreement on Technical Alliance
KCI and MPI have formed a technical alliance with the goal of mutual use of KCI's technologies relating to press molding, vacuum molding, and extrusion molding of automotive parts and home fixtures, and MPI's technologies relating to extrusion molding in the home-appliance field, and combined capabilities ranging from materials to product design. The companies will aim to expand their business by strengthening their technical foundations through initiatives in the following fields.

・ Joint studies in the core technologies of its businesses: molding technologies, die technologies, and simulation technologies
・ Joint development and marketing of new products in the markets for home fixture, automotive component, and home electronics fields, among others
・ Joint initiatives to develop new products using MPI's composite materials

 

3. Benefits of Alliance
As benefits of the agreements for use of facilities and technical alliance, the companies aim to increase their net sales by a combined total of about ¥8 billion/year, within about four or five years from fiscal 2010.

Reference: About Kodama Chemical Industry

Name	Kodama Chemical Industry Co., Ltd.
Address	1-1-12 Ueno, Taito-ku, Tokyo
President	Ken Ishii
Businesses	Manufacture and sale of plastic molded products (automotive components and home fixture parts) Sale of extrusion molding machines (e.g. T dies)
Paid-in capital	¥3,021 million
Established	8 March 1946
Main shareholder	Mitsubishi Plastics (20.64%)

 

 

 

■Inquires regarding this material should be directed to the
	Public Relations Section, General Administration Dept., Mitsubishi Plastics Inc. TEL: +81-3-3279-3800